The Waitsia Field. Onshore North Perth Basin, Western Australia. APPEA Conference, Brisbane 6 June 2016

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1 Photograph by Roger Xiang The Waitsia Field Onshore North Perth Basin, Western Australia N. Tupper, E. Matthews, G. Cooper, A. Furniss, T. Hicks and S. Hunt APPEA Conference, Brisbane 6 June

2 Disclaimer This presentation may contain forward looking statements that are subject to risk factors associated with the oil and gas businesses. It is believed that the expectations reflected in these statements are reasonable but they may be affected bya variety of variables and changes in underlying assumptions which could cause actual results or trends to differ materially, including but not limited to: price fluctuations, actual demand, currency fluctuations, drilling and production results, reserve estimates, loss of market, industry competition, environmental risks, physical risks, legislative, fiscal and regulatory developments, economic and financial market conditions in various countries and regions, political risks, project delay or advancement, approvals and cost estimates. This presentation may also contain non-ifrs measures that are unaudited but are derived from and reconciled to the audited accounts. All references to dollars, cents or $ in this presentation are to Australian currency, unless otherwise stated. Reserves and Resources. The reserves and resources in this presentation are based on and fairly represent information and supporting documentation prepared by and under the supervision of qualified petroleum reserves and resource evaluators: Dr. Suzanne Hunt, AWE Manager for Engineering and Development, and Mr. Andrew Furniss, AWE General Manager for Exploration and Geoscience. Dr. Hunt, a Petroleum Engineer with a Ph.D. in Geomechanics, is a member of the Society of Petroleum Engineer Engineers and has over 19 years experience in the petroleum sector in geoscience, field development planning, reserves estimation, production and facilities engineering. Mr. Furniss, a member of the Society of Petroleum Engineers and the American Association of Petroleum Geologists, holds an MSc in Exploration Geophysics and a BSc (Hons) in Geological Sciences and has over 25 years of industry experience in strategic planning, portfolio management, prospect evaluation, technical due diligence and peer review, reserves and resource assessment, the application of advanced geophysical technology and business development. Both have consented in writing to the inclusion of this information in the format and context in which it appears. AWE follows the Society of Petroleum Engineers Petroleum Resources Management System (SPE-PRMS) guidelines with respect to the definition of different classes of reserves and resources. 2 2

3 Agenda 1. Overview 2. Exploration History & Geological Setting 3. Field Description 4. Development Plan & Reserves 5. Conclusions

4 4 Waitsia Overview Largest conventional onshore discovery in 30 years Licence L1/L2 300 km north of Perth AWE operator (50%) with Origin Energy (50%) Discovered by deepening of Senecio-3 in 2014 Appraised by Waitsia-1 & Waitsia-2 in 2015 Early development via existing facilities & pipelines Production start-up 3Q calendar year 2016 Exciting exploration & appraisal follow-up potential

5 Agenda 1. Overview 2. Exploration History & Geological Setting 3. Field Description 4. Development Plan & Reserves 5. Conclusions

6 Exploration history onshore North Perth Basin PRIOR to WAITSIA >120 exploration wells 13 commercial discoveries 2P reserves BCF & 14 MMBBLS > 95% Permo-Triassic > 95% produced Waitsia (2C) Waitsia (2P) Redback Dongara Woodada Beharra Springs Hovea 50 Years 6 6

7 Permo-Triassic petroleum system & plays Kockatea Shale Regional Seal Oil and Gas Prone Source Rock Unconventional target Senecio-3 DONGARA/WAGINA PLAY 12 commercial discoveries Dongara Beharra Springs Senecio/Irwin Carynginia Formation Regional Seal Gas Prone Source Rock Unconventional Target Irwin River Coal Measures Gas Prone Source Rock Unconventional Target KINGIA/HIGH CLIFF PLAY >20 wells in basin without commercial success Waitsia PERMO-TRIASSIC PETROLEUM SYSTEM 7 7

8 Agenda 1. Overview 2. Exploration History & Geological Setting 3. Field Description 4. Development Plan & Reserves 5. Conclusions

9 Discovery sequence Date Activity Result 2005 Senecio-1/2 Dongara TIGHT GAS discovery 2013 Irwin 3D Improved mapping Senecio 1/2 in local fault zone 2014 Senecio-3 Dongara better quality reservoir (not tested) Well deepened due to very high gas shows Kingia/High Cliff CONVENTIONAL GAS discovery Testing confirmed high flow potential 2015 Irwin-1 Dongara TIGHT GAS discovery (not tested) Kingia secondary target wet as expected but good quality reservoir Waitsia-1 Confirmed lateral extent of Kingia/High Cliff reservoir Defined GWC Testing further confirmed high flow potential Waitsia-2 Confirmed field extension to south (not tested) Pre-Senecio-3 19 wells drilled for Dongara targets in Waitsia area but terminated before reaching Kingia/High Cliff Perceived poor reservoir quality & problem with cross-fault seal 9

10 Seismic control 3D seismic coverage of varying vintages: Moderate quality but sufficient to map Top Kingia horizon. Current re-processing project. Faults initiated in Early Permian with further growth in E-M Jurassic Steep planar faults indicative of oblique rifting of basement fabric Waitsia north culmination Waitsia south culmination 10 10

11 Structure Low-side fault closure of ~50 km 2 Crest at 3000m with 350m gross gas column Trap defined by Mountain Bridge & Senecio faults Senecio fault seals despite small throw Stress suggests W-E faults prone to re-activation not the case. Top Dongara fault pattern Depth map Top Kingia horizon 11 11

12 Composition & gas-water contacts Full suite of log, core & test data Waitsia is 93% CH 4 with low CO 2 GWC defined by pressure & log data South culmination GWC possibly higher than North 30 psi offset W-2 GWC 3325m GWC W-1/S-3 GWC 3351m Depth map Top Kingia horizon 12 12

13 Kingia & High Cliff correlation Gross thickness m Beach & shoreface setting Quartz sand composition Intervals of good porosity >11% in Kingia & High Cliff good reservoir net sand marker 13 13

14 Kingia & High Cliff reservoir characterisation Field of view 1.75 cm GOOD RESERVOIR Clay rims prevent quartz cement Abundant preserved porosity (blue) >11% porosity md permeability TIGHT RESERVOIR Pervasive quartz cement Less remaining porosity (blue) 7-11% porosity* md permeability field of view 3.5cm *Subsequently revised to 5-11% since publication 14 14

15 Good reservoir is diagenetically controlled TIGHT GOOD Porosity controlled by diagenesis NOT depth Clay rim formation not understood but likely to be influenced by depositional environment Most Kingia wells have some good reservoir deepest to date 3750m High Cliff more variable Wagina reservoir in Beharra Springs field is a direct analogue log porosity data from offset wells 15 15

16 Charge model Early Permian source rocks are mature down dip from Waitsia Expulsion occurred during maximum burial & heat flow in Late Jurassic to Mid Cretaceous onset of gas expulsion Ro1.2% Burial history & maturity model Depth map Top Kingia horizon 16 16

17 Agenda 1. Overview 2. Exploration History & Geological Setting 3. Field Description 4. Development Plan & Reserves 5. Conclusions

18 Development planning STAGE 1: DEVELOPMENT & APPRAISAL Connect existing wells to Xyris Production Facility for early sales & to establish drainage efficiency First gas 3Q 2016 calendar year Planning to drill 2 further appraisal wells to define reserves STAGE 2: DEVELOPMENT CONCEPT Full field development of good quality reservoir Plateau rate ~100 TJ/D from approx. 6 initial wells (includes 3 appraisal wells already drilled) Total of production wells to maintain plateau over 20+ year field life - tied to centralised processing facility with regional hubs STAGE 1: DEVELOPMENT & APPRAISAL Xyris PF In-field pipeline STAGE 2: DEVELOPMENT CONCEPT North Hub Waitsia PF South Hub FUTURE STAGES Progressive development of tight gas contingent resources & unconventional prospective resources Existing wells Planned appraisals Development wells Existing plant New plant or hub 18 Development concept & appraisal well locations subject to joint venture and regulatory approval 18

19 Reserves & contingent resources August 2015 Reserves & Contingent Resources reported following drilling of Waitsia-1 & Waitsia 2 21 st August 2015 AWE ASX Release Reservoir Interval Gross Reserves (BCF) Gross Contingent Resources (BCF) 1P 2P 3P 1C 2C 3C Kingia/High Cliff (Good Reservoir) Kingia/High Cliff (Tight Reservoir) TOTAL (2P / 2C) June 2016 Reserves & Contingent Resources reported following integration of core data, flow test data and dynamic simulation modelling 3 rd June 2016 AWE ASX Release Reservoir Interval Gross Reserves (BCF) Gross Contingent Resources (BCF) 1P 2P 3P 1C 2C 3C Kingia High Cliff TOTAL (2P / 2C)

20 Agenda 1. Overview 2. Exploration History & Geological Setting 3. Field Description 4. Development Plan & Reserves 5. Conclusions

21 Conclusions Largest conventional onshore Australian discovery in 30 years Material development with access to existing infrastructure & markets New play has re-invigorated Perth Basin exploration & development Positive for Mid West & WA regional economic benefits; diversity of gas supply; royalties Incentive for continued exploration in other onshore Australian basins Photograph by Roger Xiang Senecio-3 production test 21

22 Acknowledgements Management of AWE & Origin for permission to publish and supporting the decision to deepen Senecio-3 Waitsia Stage-1A Flowline under construction May